School District of Waupaca Budget Hearing Tax Levy Certification October 29, 2013

“Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson American Poet “Do not go where the path may lead, go instead where there is no path and leave a trail.” Ralph Waldo Emerson American Poet

The Budget Trail The Final Destination

Budget Overview All Budgeted Expenses for all Funds remain the same as presented at the October 8, 2013 Regular Board Meeting. All Budgeted Expenses for all Funds remain the same as presented at the October 8, 2013 Regular Board Meeting. Which equates to a 3.09% Overall Fund 10 Expense Increase from (See Budget Summary Sheet ) Which equates to a 3.09% Overall Fund 10 Expense Increase from (See Budget Summary Sheet ) The District Proposes Taxing Below the Legal Allowable Revenue Limit by $2,702,005 Million Dollars The District Proposes Taxing Below the Legal Allowable Revenue Limit by $2,702,005 Million Dollars

Budget Overview - The proposed budget basically proposes a $155,000 revenue shortfall (Fund 10 = Revenues $22,314,179 – Expenses = $22,470,786). Reason: The final budget attained a $255,000 surplus ($36,000 of which was generated from a health insurance credit). The district proposes to add $100,000 of this year’s revenues toward the districts OPEB liability. - The overall Fund 10 Revenue Budget therefore increases by approximately $100,000 while the overall Fund 10 expense budget remains the same as presented at the October 8, 2013 meeting.  The Total of all Designated Fund Balance will decline by approximately $155,000 due to budgeting expenses more than revenues. While the OPEB Designated Fund Balance will increase by $100,000.

Factors that Contribute to the Tax levy General Aid Certification General Aid Certification Student Enrollment Student Enrollment Overall District Property Valuation Overall District Property Valuation

General State Aid Based upon a July 2013 estimate from the Department of Public Instruction general aid for the district was estimated at $8,687,385 at this year’s October 8, 2013 Regular Board Meeting. The final general aid certification amount, which the district received last week reflects an increase amount as shown in Table 2.0 below. Based upon a July 2013 estimate from the Department of Public Instruction general aid for the district was estimated at $8,687,385 at this year’s October 8, 2013 Regular Board Meeting. The final general aid certification amount, which the district received last week reflects an increase amount as shown in Table 2.0 below.

$3,459,832 4 Year Cumulative General State Aid Loss Shifts the Tax Burden to Taxpayer

The Effect

Overall Tax Levy Comparison to Last Year ( ) Tax Levy Actual Tax Certification Actual Tax Certification (October 30, 2012)(October 29, 2013)Change $ 14,343,370$14,646,795$303,425

Overall Tax Levy Comparison to Finance Meeting Projections

Student Enrollment Membership Count As I indicated at this year’s Finance Meeting the district anticipated a decrease in student enrollment from the prior year thus I estimated the combination of these two counts to be 2173 students. Table 3.0 shows the final student enrollment count used for revenue limit purposes below As I indicated at this year’s Finance Meeting the district anticipated a decrease in student enrollment from the prior year thus I estimated the combination of these two counts to be 2173 students. Table 3.0 shows the final student enrollment count used for revenue limit purposes below

Overall Property Valuation The district, in conjunction with Wisconsin Public Finance Professionals, LLC (at no cost to the district) anticipated at this year’s October 8, 2013 Meeting that the overall property valuation to decline by 0.26% ($3,600,367) projecting the overall property valuation to be $1,375,075,555. Actual property valuation was certified by the Department of Revenue in late October with a decline of 0.27% equaling $1,374,704,132. The district, in conjunction with Wisconsin Public Finance Professionals, LLC (at no cost to the district) anticipated at this year’s October 8, 2013 Meeting that the overall property valuation to decline by 0.26% ($3,600,367) projecting the overall property valuation to be $1,375,075,555. Actual property valuation was certified by the Department of Revenue in late October with a decline of 0.27% equaling $1,374,704,132.

Property Valuation History

Tax Levy The necessary tax levy to support this year’s budget is $14,646,795. At this year’s Regular Board Meeting on October 8, 2013 the tax levy for the district was estimated at $14,785,323, meaning the overall tax being requested in comparison to the October 8th Meeting estimate is less. (This includes funds 10, 39, 41 and prior year property charge backs) The necessary tax levy to support this year’s budget is $14,646,795. At this year’s Regular Board Meeting on October 8, 2013 the tax levy for the district was estimated at $14,785,323, meaning the overall tax being requested in comparison to the October 8th Meeting estimate is less. (This includes funds 10, 39, 41 and prior year property charge backs)

Fund Balance Designation

SCHOOL DISTRICT OF WAUPCA SCHOOL DISTRICT OF WAUPCA BUDGET HEARING MOTIONS BUDGET HEARING MOTIONS OCTOBER 29, 2013 OCTOBER 29, Motion To Adopt The Budget As Presented (Or Adjusted) Proposed Proposed Total Revenues – All Required Funds ……………………….$30,229,056 Total Revenues – All Required Funds ……………………….$30,229,056 Total Expenditures – All Required Funds …………………..$30,996,477 Total Expenditures – All Required Funds …………………..$30,996,477 Motion to adopt the revenue budget at $30,229,056 and the expenditure budget at $30,996,477. Motion to adopt the revenue budget at $30,229,056 and the expenditure budget at $30,996, Motion To Set Tax Levy FundTax Levy FundTax Levy General Fund$11,288,109 General Fund$11,288,109 Debt Service Fund$ 3,358,686 Debt Service Fund$ 3,358,686 Capital Expansion Fund$ 0 Capital Expansion Fund$ 0 Chargeback Personal Property$ 0 Chargeback Personal Property$ 0 Total Levy $14,646,795 Total Levy $14,646,795 Motion to set the tax levy at $14,646,795. Motion to set the tax levy at $14,646,795. The above levy generates a tax rate of per $1,000 of valuation. The above levy generates a tax rate of per $1,000 of valuation. 1. Motion To Designate Fund Balance Motion to designate the General Fund Balance: Motion to designate the General Fund Balance: Future Debt Service - $ 289,363 Future Debt Service - $ 289,363 Other Post Employment Benefits $ 1,275,488 Other Post Employment Benefits $ 1,275,488 Cash Flow Purposes (residual) $ 6,180,236 Cash Flow Purposes (residual) $ 6,180,236 Total Proposed General Fund Balance $ 7,745,087 Total Proposed General Fund Balance $ 7,745,087

Published Budget Change Request The Annual Required Budget Publication, which is mandated to be published two weeks prior to the Budget Hearing, was published October 10, However the budget for taxes; general state aid and computer aid change annually for exact figures are not known until late in October. The Annual Required Budget Publication, which is mandated to be published two weeks prior to the Budget Hearing, was published October 10, However the budget for taxes; general state aid and computer aid change annually for exact figures are not known until late in October. Therefore, in addition to approving the Tax Levy Resolution, I am requesting that the Board of Education approve the revenue budget changes in accordance to Wisconsin Statute 65.90(a).. Therefore, in addition to approving the Tax Levy Resolution, I am requesting that the Board of Education approve the revenue budget changes in accordance to Wisconsin Statute 65.90(a)..

Budget Change Request

Malcolm Forbes once said: Malcolm Forbes once said: “Education’s purpose is to replace an empty mind with an open one”

While the purpose of the Annual Budget is to achieve educational objectives that will impact the future. While the purpose of the Annual Budget is to achieve educational objectives that will impact the future.

And we need to attend to financial numbers, in the bigger picture of what we are all about it can even be more than owing an education to our children. We can help to open the mind and heart to : life’s mysteries to be told life’s mysteries to be told wondrous possibilities that life holds wondrous possibilities that life holds the awesome potential in each to unfold the awesome potential in each to unfold

Herein Lies The Real Gold

Questions?